Eugene and Velma Are Married

question 55

Multiple Choice

Eugene and Velma are married. For 2014, Eugene earned $25,000 and Velma earned $30,000. They have decided to file separate returns and are each entitled to claim one personal exemption. They have no deductions for adjusted gross income. Eugene's itemized deductions are $11,200 and Velma's are $4,000. Assuming Eugene and Velma do not live in a community property state, what is Eugene's taxable income?

• A)$9,850
• B)$13,800
• C)$14,850
• D)$18,800
• E)None of the above

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Definitions:

Interest Rate

is the cost of borrowing money, typically expressed as a percentage of the principal, charged by lenders to borrowers.

Federal Reserve

The central banking system of the United States, responsible for monetary policy, regulation of financial institutions, and maintaining stability in the financial system.

High Inflation

A condition where the general price levels of goods and services rise rapidly over a period, eroding purchasing power.

Money Supply

The complete collection of economic resources in money form available at a distinct period within an economy, which includes cash—both coins and notes—and amounts held in banking accounts for checking and savings.